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TAX BENEFITS

Investing in direct ownership of oil & gas wells offers significant tax

benefits. In order for investors to take deductions for tangible and
intangible costs, they must participate directly in the wells. The purchase

of Working Interest in Oil & Gas wells qualifies as a "direct
investment". Most of your investment should be deductible in the first

year. You could save thousands of dollars in taxes by investing in Oil &

Gas Working Interests. We always suggest consulting with a tax advisor
regarding the tax benefits for your specific situation.

OIL & GAS REVENUE PAYMENT SCHEDULE

Below is what investors can expect with regard to monthly oil & gas

revenue payments with a successful well.

As soon as a well is put into production, we will begin selling the oil
and/or gas to a local buyer which is BML Inc.. When the oil storage

tanks are near full, we will notify the company that buys the oil and they

will send a tanker truck to the well to pump out the oil and meter it. Each
time they pick oil up from our tank(s), we receive a “run ticket” showing

the date and amount of oil picked up. At the end of each month, the

buyer begins the process of preparing the payment to us for the oil
picked up that month.

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We will usually receive the buyer’s payment on the 20 of the month.
Once we receive the payment, we reconcile it against our run tickets to
make certain it is correct. We then input the oil revenue into a program

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